"I'm so excited about this news and I think there's nobody better to do this than my beloved Kenny Ortega who is as responsible as anyone for the success of the first one," she said in a statement to The Wall Street Journal. I can't wait to see what he's going to do with it."
Ortega, who choreographed the 1987 original, recently signed with Lionsgate to direct a new version.
Grey, 51, originated the role of Frances "Baby" Houseman and co-starred with Patrick Swayze, who played dance instructor Johnny Castle. The 1987 film cost $6 million to make and grossed $214 million worldwide.
For his part, Ortega said he thinks he can find the next Grey and Swayze: "I believe everywhere you look there is evidence that the talent is out there and I can't wait to begin the process of discovering the next breakout triple threats."